Allied, the parent company of several subsidiaries engaged in providing logistics, distribution and transportation services to the automotive industry, said its revenues for the first quarter of 2001 were $218.2 million, compared with revenues of $282.9 million for the first quarter last year.
The company experienced a net loss of $18.9 million during the first quarter of 2001, versus a loss of $1.0 million during the same period in 2000. Excluding severance and debt amendment costs expensed during the first quarter of 2001, the net loss was $15.2 million.
Allied said its revenues and operating results are typically lower in the first quarter due to manufacturing plant downtime. However, new vehicle production in the U.S. and Canada in the first quarter of 2001 was at its lowest level since 1993 in a first quarter without labor disputes.
Production for the Big Three automakers – all major customers of Allied – declined by 23%, which pushed down Allied’s vehicle deliveries by 26% for the first quarter. The unexpected volume decline of 18.5% in the fourth quarter of 2000, followed by the 26% decline in the first quarter of 2001hit Allied’s operating earnings hard, the company said, and the company does not foresee improving conditions anytime soon.
Allied expects vehicle deliveries to decline approximately 15% in the second quarter followed by an approximate 10% decline in the third quarter. Deliveries are expected to stabilize by the fourth quarter, increasing approximately 2%. Based on these estimates, Allied expects to post an additional net loss in the range of $5 to $10 million for the last three quarters of 2001.
